ORGANIZATIONAL BEHAVIOUR

CASE ANALYSIS: ALL THE WRONG MOVES

Submitted by:
Group 2- SECTION D
ABHIJEET GULIA - 2015194
ANURAG MATHUR - 2015202
CHEERAG BAJAJ - 2015210
MILIND KAMBLE - 2015218
PRAGYAN PARAMITA - 2015226
RISHABH CHADDHA- 2015234
SHASHANK GUPTA-2015242
SIMANTA DAS - 2015250

INTRODUCTION:
This case is about a company Nutrorim which was founded in
1986 by an organic farmer and his wife. Nutrorim manufactures
various lines of vitamins and nutritional supplements. The case
is about the flaws in decision making process of the company.
Don Rifkin is the main character of the case who tries to correct
the decisions made by the company at the time of crisis or
otherwise. The employees of the company give mixed and
different reviews over the same discussions. Don, the CEO of
the company tried to find out the feedbacks with the help of a
consultant, who was hired to review the companys decision
making process. While going through the case we tried to find
out the main reasons for poor decision making of the company
and tried to find the solutions for the same.

OBJECTIVES:
To discuss how individual differences and organizational
constraints affect decision making. What can managers do to
improve their decision making?

MAIN ISSUES:
1. How Nutriroms decision-making process has proved
problematic during the crisis period?
2. Avoidance of firm stand by the CEO, Don Rifkin.
3. How Don Rifkin needs to embrace alternative decisionmaking techniques, how to take a more dictatorial
approach to decision making?

THEORETICAL CONCEPT:
Decision making The process of choosing a course of action
for dealing with problems and an opportunity. In a nutshell, it is
a process of identifying and choosing solutions which lead to a
desired end result.
Models of Decision Making
The Rational Model
Consists of a structured four-step sequence
1. Identifying the problem
2. Generating alternatives solutions
3. Selecting a solution
4. Implementing and evaluating the solution
The Social Model
At the opposite extreme from the economic rationality model is
the social model drawn from psychology. Sigmund Freud viewed
humans as bundles of feelings, emotions and instincts, with
their behaviour guided by their unconscious desires. These
processes even have an impact in the international arena as
they provide some basic rules of protocol.
Simons bounded rationality model
To present a more realistic alternative to the economic
rationality model, Herbert Simon proposed an alternative

model. He felt that management decision-making behaviour

could be described as follows:
1. In choosing between alternatives, manager attempt to
satisfy or looks for the one which is satisfactory or good
enough. Examples of satisfying criteria would be adequate
profit or share or the market and fair price.
2. They recognize that the world they perceive is drastically
simplified model of the real world. They are content with the
simplification because they believe the real world is mostly
empty anyway.
3. Because they satisfy rather than maximise, they can make
their choices without first determining all possible behaviour
alternatives and without ascertaining that these are all the
alternatives.
4. The managers treat the world as empty, they are able to
make decision with simple rule of thumb. These techniques do
not make impossible demands upon their capacity for thought.
Intuitive Decision Making
It is an unconscious process which is created out of the
conscious thoughts which basically relies on the holistic
associations.

RECOMMENDED SOLUTION
They didnt have a proper method for any serious and
critical decision making. They should first define it and add
as a code of conduct.
The decision making needs to be centralised as the major
decisions were made in open meetings which required a
firm stand.

 In case of their investment in Dipensit stock, the CFO

didnt do any research and gave a decision to invest which
is not a feature of good company.
The recall of the product was probably at wrong time and
too early as the product was on high sale. So they could
have taken some time for internal investigation.
They should have trusted their R&D department which had
already proven the product as non-harmful.
The decision making problem is mainly because Nutrorim
faces a lack of true leadership. Rifkins leadership style is
inconsistent. Sometimes he displays objectivity and listens
closely, but at other times he shows poor judgment and a
lack of objectivity. Don Rifkin should be a more
authoritative in making the decisions. He should continue
taking opinions from his subordinates and should take a
firm decision on his own.

MANAGERIAL LEARNING
A manager should develop a risk taking approach.
A manager should be firm on his stand with valid
justifications and support his subordinates when they
show a convincing confidence on their work and its
outcomes.
A manager should always solves the issues as and when
they appear. If manager lets the problem continue, then
the situation might worsen.
A manager should not be carried away by higher lofty
goals i.e. profit maximisation rather they should start
maximizing values.